Households keeping growth – helagotland.se

Households keeping growth – helagotland.se

The GDP growth in the third quarter was 2.6 percent, according to figures from Statistics Sweden (SCB). It was slightly worse than expected.

-GDP was very much in line with the assessment made by the Riksbank’s done, so it was no surprise, says Annika Winsth, chief economist at Nordea.
-Däremot Was much stronger retail than expected, and it’s more important right now as we see it. Consumption is the engine of the economy.

Retail sales rose by 4.5 percent in October compared with the same month last year, according to Statistics Sweden. It was a larger increase than analysts had expected.

-We have a weak exports and mediocre investments, except in construction. When consumption is what should be the driving force. Therefore, it is crucial to follow, says Winsth.

New signals for amortization requirements may affect how households choose to spend their money in the future, says Annika Winsth. Therefore, it is important to carefully monitor household behavior.

Nordea do not think growth will accelerate next year:

‘Our assessment is that both the government and the Riksbank is too optimistic in their forecasts for next year unfortunately. Our assessment is that growth is more likely to be around 2 per cent in GDP and consumption, than nearly three percent they believe.

Finance Magdalena Andersson (S), however, thinks that the government is correct in their assessments.

– There was no significant change and no great difference compared with the forecasts government had in the budget, she said.

Nor NIER see any lift in sight. It is overall a more sprawling picture than usual, says Director of Forecasting Jesper Hansson.

-The sad thing is that the negative predominates. The outside world is weaker. Then hold domestic demand momentum. Households seem to continue to maintain growth.